Merchandising Market By Type (Retail Merchandising, Visual Merchandising, Digital Merchandising, Omnichannel Merchandising, Trade Merchandising, Product Merchandising), By Application (Product Planning, Pricing Optimization, Inventory Management, Shelf Space Planning, Promotional Planning, Category Management, Customer Experience Enhancement), By Technology (AI & Machine Learning, IoT & Smart Shelves, Augmented Reality (AR), Big Data & Analytics, Robotics Process Automation (RPA)), By Deployment Mode (On-Premise, Cloud-Based), By End User (Retail, E-commerce, Consumer Packaged Goods (CPG), Fashion & Apparel, Electronics, Home & Living, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles and Market Forecast, 2025 – 2035

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Industry Outlook

The Merchandising Market accounted for USD 253.81 Billion in 2024 and USD 272.95 Billion in 2025 and is expected to reach USD 564.65 Billion by 2035, growing at a CAGR of around 7.54% between 2025 and 2035. Merchandising includes the tactics and actions businesses use to sell products and services to buyers, including how they are set up for display, priced, and made available in stores and on websites. It helps draw customers, boost the shopping experience, and increase sales numbers. The business of merchandising is changing due to growing e-commerce, consumer trends, and improvements in technology. Firms operating in retail, fashion, electronics, and related fields rely on merchandising to remain competitive and meet what customers expect. Because retail keeps advancing, retailers are still looking for smart and integrated merchandising solutions.

Industry Experts Opinion

“We’ve talked quite a bit about the art: good merchandising and good execution in stores. But there’s a science element to this as well, and what you want to do is marry the two together. That means building a repository of data and processes, collected through interviews and things like that, so that we have a good idea of how goods flow through the retailer.”

• Bill Mutell, Partner at McKinsey & Company, during the McKinsey on Consumer and Retail podcast

Report Scope:

Market Dynamics

Rising demand for personalized customer experiences is encouraging retailers to invest in smart merchandising strategies.

The demand for distinctive experiences from consumers is driving a major increase in merchandising. The majority of customers want firms to be aware of their purchasing and behaviour patterns. Retailers are now investing in smart ways to use what they learn from customers to provide individually tailored recommendations, change prices, and run tailored promotions. If merchandise is personalized, customers enjoy their shopping more and stay more engaged with the brand. Using this data, businesses can make sure they give customers the right product at the right time, making it more likely they will convert. Because the customer experience is personalized, the customer ends up feeling noticed and appreciated, and therefore buys again. For this reason, companies selling online and in stores are adjusting how they display and organize their merchandise.

With the help of artificial intelligence and machine learning, companies can now provide personalized offerings for many customers. These technologies examine a large amount of information, including a person’s internet browsing, purchases, and general information about them, to match each customer with the best products. Online shops include suggested products and list purchases made by people who viewed the same product to lead users to appropriate offerings. Stores with physical locations use digital screens and mobile apps to dish out instant promotions based on each person’s likes. Because of these advancements, companies are ditching old methods for new ones that centre on interaction with customers. It is expected to continue, as tailored experiences are now seen as crucial for retailers trying to compete in a busy industry. That said, the growing need to personalize experiences is fueling progress in the merchandising market.

Growth in e-commerce platforms is pushing brands to adopt digital merchandising to stand out and attract more customers.

Digital merchandising is becoming more and more significant as more people shop online and firms compete on e-commerce sites. Because so many are shopping from home, businesses should ensure their products are well-designed and simple to manage to earn sales. By using content that changes, detailed product information, rich visuals, and data analysis, digital merchandising makes online shopping better.

Optimizing a website allows companies to put their most popular items in the spotlight, suggest similar products, and immediately show whether items are available in stock. Using this approach helps get more people to visit your website while boosting the rates of conversion rates. More and more online shopping makes digital merchandising vital for brands to remain top of mind for their customers. It also means retailers can focus on personalizing the store’s contents and the product placement, which matters a lot today because of data. Based on what people look up and buy on their websites, brands change the displays of their products and offers. Because of this, customers have a smooth and personalized digital shopping experience.

Using virtual try-ons, viewing products in all directions, and interactive pictures helps make shopping online more pleasant and reliable. Together, these tools provide useful performance data that allows companies to sharpen their strategies quickly. As technology improves and shoppers look for more, digital merchandising is becoming faster for businesses striving to get noticed and make their customers happy. Such a shift is one of the key reasons the merchandising market is expanding, as it helps companies build attractive and effective online stores that can keep up with the fast growth of e-commerce.

High setup and technology costs can limit small and medium-sized businesses from adopting modern merchandising tools.

Modern merchandising tools are expensive and hard for small to medium-sized businesses to afford. It typically takes a lot of money for software, hardware, and capable people to implement and run advanced merchandising solutions well. It is often hard for SMBs to cover the initial spending, especially if the result might take a while to become clear. Due to this financial challenge, businesses are not able to use innovative merchandising quickly, which could help engage customers more and increase their sales. It can be difficult for SMBs because digital merchandising platforms are not straightforward and still require ongoing effort.

When the setup is done, businesses must update their systems, secure them, and give staff training to ensure they are always safe and work effectively. Because many smaller firms don’t have the technology experts, the tools they buy aren’t used to their full potential. Although there are obvious advantages to modern merchandising, its cost and the difficulties involved in running a business stop many SMBs from using it widely. Such restraint means that only big companies have the resources to use innovative merchandising techniques, which could make competition tougher and lower the growth rate of the market.

The growing use of AR/VR in retail opens new ways for interactive and engaging merchandising experiences.

Virtual reality (VR) and augmented reality (AR) are being used by an increasing retailers to create more enticing product displays. With these technologies, customers can experience products on their screens, try out items using virtual models, and receive a clear picture of what the product would look like in their environment. When businesses use AR and VR for merchandising, shoppers get personalized experiences that interest them and lead to better engagement. Because of this technology, brands can make an extraordinary impression on customers, setting them apart in the crowded marketplace. With evolving tastes, using AR and VR is becoming an important approach to get and keep customers.

AR and VR allow retailers to eliminate store space restrictions by letting customers access virtual shops and catalogues from any place. Merchandising now works online, taking retail up a notch and supporting both e-commerce and omnichannel activity. Due to digital platforms, customers can experience the features of products, make changes to them, and get instant help, which adds value to the overall shopping journey. With the decline in costs and increase in ease of use of these technologies, businesses have a great new chance to promote growth, create innovative solutions, and lead to increased customer happiness.

Expansion in emerging markets gives retailers a chance to build new merchandising strategies tailored to local preferences.

Opening stores in emerging markets gives retailers the option to develop new ways to present products that fit well with the tastes and customs of those local customers. To meet the expectations of shoppers in these countries, merchants must find unique ways to present, price, and advertise products. If retailers pay attention to these regional needs, they can plan their merchandising so that customers are more attracted and spend more. Using this method, brands can connect better with customers in these growing areas and form strong loyalty that helps them succeed over the long run.

Faster urban growth and increased income in emerging markets are encouraging people to look for fresh and exciting retail experiences. Combining old-fashioned crafts with new digital tools is a merchandising strategy that helps retailers take advantage of the growth in customer demand. Due to this, a wide group of shoppers enjoys the distinct shopping experience, including the traditional and technology-loving crowd. Because these markets are not fully developed, less competition exists for new entrants to take advantage of. Overall, going into emerging markets offers retailers a way to stay competitive by trying new things and focusing on brand-new markets.

Segment Analysis

Based on Type, the Merchandising Market is segmented into Retail Merchandising, Visual Merchandising, Digital Merchandising, Omnichannel Merchandising, Trade Merchandising, and Product Merchandising. Retail Merchandising is at the forefront of these practices. Retail Merchandising enables firms to interface with consumers directly and assists in driving sales for their shops. Digital Merchandising is developing rapidly, together with online shopping, due to personalized and data-based methods of luring buyers. Merchandising in store-based methods continues to be the top industry because it is well understood as a way of enhancing the ways stores are organized and impacting what consumers purchase.

Based on Application, the Merchandising Market is segmented into Product Planning, Pricing Optimization, Inventory Management, Shelf Space Planning, Promotional Planning, Category Management, and Customer Experience Enhancement. Inventory Management is the leading segment since great inventory control sustains product stock levels while reducing expenses. Price optimization is becoming more important to retailers who attempt to remain competitive while generating profit. Customer Experience is becoming increasingly significant to increase loyalty and enhance how content consumers experience through the application of customized merchandising strategies. Overall, Inventory Management continues to play an integral part as it ensures improving both the running of operations smoothly and sales figures for companies.

Regional Analysis

The North American merchandising market is well-established and driven by a mature retail industry and advanced digital infrastructure. Retailers throughout the region are choosing omnichannel and digital merchandising to better serve their customers. As global stores and customers who use technology emerge, companies need to use data and customize their merchandising. AI and analytics help retailers optimize how products are set up when they use visual and digital merchandising. Promotion campaigns and high standards from shoppers mean that merchandising plays an important role in retail success in the area. Ongoing investments in innovative technologies and seamless customer experiences continue to fuel market growth and competitiveness.

The Asia-Pacific merchandising market is rapidly expanding due to a booming retail sector and increasing internet penetration. A rise in e-commerce in China, India, and Japan is fueling the spotlight on digital and omnichannel merchandising. Changes in the way merchandising is done are due largely to the rising popularity of organized retail and increasing numbers of middle-class people. Because competition is strong, retailers and brands are using visual merchandising strategies to bring customers to their stores. Mobile commerce and social media are also having a strong effect on merchandising trends in Asia, opening up many new opportunities for businesses to grow.

Competitive Landscape

In the merchandising market, numerous regional and international firms strive to provide clients with sophisticated, integrated systems. Several key companies like SAS Institute Inc., Oracle Corporation, SAP SE, IBM Corporation, and Manhattan Associates, Inc. are utilizing new technologies such as artificial intelligence, machine learning, and data analytics to make their merchandising more intelligent. Firms in this industry compete by giving companies complete platforms for planning, executing, and reviewing their performance on many sales channels. Building strategic partnerships, carrying out mergers, and engaging in acquisitions are common ways companies try to grow in the market and expand into other countries. To be competitive, the market relies on constant development and approaches that, above all, place customers at the centre.

Merchandising Market, Company Shares Analysis, 2024

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Recent Developments:

• In January 2025, JCPenney merged with SPARC Group, which owns brands like Aeropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.

Report Coverage:

By Type

• Retail Merchandising
• Visual Merchandising
• Digital Merchandising
• Omnichannel Merchandising
• Trade Merchandising
• Product Merchandising

By Application

• Product Planning
• Pricing Optimization
• Inventory Management
• Shelf Space Planning
• Promotional Planning
• Category Management
• Customer Experience Enhancement

By Technology

• AI & Machine Learning
• IoT & Smart Shelves
• Augmented Reality (AR)
• Big Data & Analytics
• Robotics Process Automation (RPA)

By Deployment Mode

• On-Premise
• Cloud-Based

By End User

• Retail
• E-commerce
• Consumer Packaged Goods (CPG)
• Fashion & Apparel
• Electronics
• Home & Living
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• SAS Institute Inc.
• Oracle Corporation
• SAP SE
• IBM Corporation
• Manhattan Associates, Inc.
• Blue Yonder
• Infor, Inc.
• Epicor Software Corporation
• Diebold Nixdorf, Incorporated
• Toshiba Global Commerce Solutions, Inc.
• Mi9 Retail
• RELEX Solutions
• Shopify Inc.
• Cegid Group
• Retail Pro International, LLC

Frequently Asked Questions (FAQs)